Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295869 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16846
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper explores how a minimum wage affects a firm's behavior with a competitive labor market and an uncertain export cost. The model provides several novel insights which are consistent with recent empirical evidence. Thus, a minimum wage increases an exporter's foreign-market size and may cause a non-exporter to start exporting. The foreign-market size may increase so much that, although the home-market size decreases, the overall firm size increases.
Subjects: 
exports
minimum wage
firm size
JEL: 
J30
Document Type: 
Working Paper

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